[Congressional Record Volume 159, Number 86 (Monday, June 17, 2013)]
[House]
[Pages H3684-H3685]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
JOBS
The SPEAKER pro tempore. Under the Speaker's announced policy of
January 3, 2013, the Chair recognizes the gentleman from Illinois (Mr.
Hultgren) for 30 minutes.
General Leave
Mr. HULTGREN. Thank you, Mr. Speaker.
Before I begin, I ask unanimous consent that all Members may have 5
legislative days in which to revise and extend their remarks and
include extraneous materials on the topic of my Special Order.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Illinois?
There was no objection.
Mr. HULTGREN. Mr. Speaker, as I begin, I do want to wish and hope
that you and others of our colleagues had a very happy Father's Day
yesterday. It is one of the most important things for fathers, and
mothers, to be able to provide for their families.
Mr. Speaker, this evening I would like to talk about what for many
Americans is probably the most pressing, or maybe depressing, issue our
country is facing right now: jobs, unemployment and the need to create
more jobs. But while we as a Nation face challenges, the roadmap to
prosperity is clear. The question is, will we act on the
recommendations of those who create the jobs, that drive our national
economy, America's small businesses and entrepreneurs?
As I speak, the unemployment rate in the United States stands at 7.6
percent. According to the American Enterprise Institute, just 64.4
percent of working age men are employed, the lowest level by far since
the Great Depression, and an astounding 5 percentage points lower than
at the beginning of the current downturn. A staggering 4.4 million
workers have been out of work for 27 weeks or longer.
{time} 2130
In Illinois, my home State, the unemployment rate is even higher--at
9.3 percent. The unemployment rate in my home State has been at or
above 8.6 percent since April of 2009; 611,000 people are currently out
of work in Illinois.
According to the Bureau of Labor and Statistics, of the 26.3 million
part-time workers, 7.8 million are working part time for economic
reasons, meaning the job market wasn't robust enough to support full-
time positions or they could only find part-time work.
Jobs, unemployment, job growth--all of these are issues on the minds
of Americans because, directly or indirectly, all Americans are
affected by them. When I meet with small businesses and employers
around my district, I ask them, what would it take for you to create
just one more job? I would love for them to create 10 more jobs or 20
more jobs or 50 more jobs; but I ask them, what would it take for you
to create just one more job? They tell me that the best way to spur job
creation and economic growth is to reduce government regulations, cut
taxes and simplify the Tax Code, and reduce the size of government by
cutting spending.
Having a full-time, stable job and going to work every day is
necessary just to meet the challenges of daily living. Americans'
pocketbooks are pummeled every day. Take gas prices, for instance. The
nationwide average price for a gallon of gas has jumped by more than $1
in the last 4 years from $2.58 a gallon in June of 2009 to $3.64 a
gallon in June of this year.
The price of gas in Illinois right now is averaging $4.08 a gallon.
That's 15 cents per gallon higher than this time last year. In the
Chicago area and in my district, prices are even higher. The average
price for a gallon of regular gas is a ridiculous $4.28. This is just
one example of how everyday life is becoming less and less affordable
for ordinary Americans.
Creating good, full-time jobs must be our priority. But small
business owners in my district tell me that in the current ``business
averse'' climate, this is difficult, if not impossible, for them to do.
Jeff, the president of a small industrial pump manufacturing company,
is not hiring. He would like to, but he says he can't. He says that
``business owners have to be optimistic that the business environment
will be suitable for business growth.'' He goes on to say, however,
``The unfriendly business climate coming from Washington and the huge
deficit spending reduces optimism that the business climate will
continue to improve or even remain stable.'' Jeff also says,
``Government regulations and high taxation create uncertainty--and
government regulation and inflationary policies are driving up the cost
of hiring. The primary resource of business needs is employees.''
Then there's Tom, the president of a raw materials distribution
company in my district, who says ``the biggest thing holding me back
from hiring is uncertainty of the future business climate.'' Tom said,
``We have already seen health care cost increases of nearly 20 percent
year over year in early 2013, which was on top of the 12 percent
increase in 2012.'' Tom also stated, ``We pay for 75 percent of the
cost of health care for our employees. The parts of health care
legislation yet to be implemented will probably penalize us even more
for doing the right thing. We do not understand how health care
legislation will impact our business.''
The recommendations of the small businesses that create the jobs in
this country--the ``engines of the economy''--are critical to
increasing employment and spurring growth in our national economy.
Reducing the regulatory burden on small businesses is one critical
factor toward inducing them to hire more workers. The burdensome nature
of proposed Federal regulations is making long-term planning for
businesses and growth virtually impossible. An inability to plan is
having a paralyzing effect on local investment and hiring.
According to the National Federation of Independent Business, in only
the last 3 months there have been 6,669 regulatory changes posted or
notices posted on the Federal regulatory Web site. That's an average of
74 regulations per day. Let me repeat that: NFIB's own study says in
only the last 3 months there have been 6,669 regulatory changes posted
or notices posted on the Federal regulatory Web site, an average of 74
regulations every single day.
This regulatory morass forces small businesses to hold onto any extra
revenue they may have for fear of new compliance costs. This means
foregoing opportunities to invest or hire new workers. Some businesses
are forced to close altogether.
A recent poll of the National Association of Manufacturers and the
National Federation of Independent Business found that 62 percent of
small business owners and manufacturers say the United States' own
regulations, rules, and taxes impact their businesses more negatively
than foreign competition. So our own regulations, according to a
majority of business owners, are more harmful to them or more
threatening to them than foreign competition.
Small businesses are the engine of our Nation's economy. They create
about two-thirds of new jobs in the United States. They employ more
than half of the private sector workforce. We need to unleash their
potential.
So what can be done? Well, we must require regulatory authorities to
review their regulations for usefulness and relevance and amend them as
necessary to get rid of them if they are obsolete.
I have introduced legislation to do just that. H.R. 309, the
Regulatory Sunset and Review Act, requires Federal agencies to
regularly review regulations on their books and establish a process to
sunset those that are duplicative, conflicting, or no longer necessary.
Small businesses need a seat at the table at the earliest stages of
crafting regulations. Too often, regulators generating rules have
little or no contact with the businesses affected by those regulations
they implement and, thus, little knowledge of the impact on jobs.
Regulators need to assess the long-term costs and benefits of
regulations--including how they will affect job loss and job creation--
using the best available tools and adopt only those regulations whose
benefits clearly outweigh the costs.
The regulatory process requires transparency and accountability.
Sharing publicly the reasons why certain public input was not
incorporated and disclosing the data, methods, and models underlying
Federal regulatory decisionmaking are also important steps to restoring
trust to the Federal regulatory process.
[[Page H3685]]
Reducing red tape is critical, but cutting taxes and implementing
meaningful tax reform that incentivizes businesses to hire is also key
to invigorating job growth. When taxes are lower, businesses invest
their resources and hire more workers, which is exactly what we want.
When taxes are lower, taxpaying citizens are able to keep more of their
own money, money to spend as they see fit, to save, or to invest.
Congress must consider the impact tax policy is having on small
businesses' ability to succeed when small businesses are a primary
source of job creation in the United States and the engines of economic
growth.
Small businesses--those with less than 500 employees--represent 99.7
percent of all employers, and employ almost half of the private sector
labor force--55 million workers. In Illinois, again my home State,
small businesses represent 98.3 percent of all employers and provide
jobs to 2.4 million workers, about half of the private labor force.
So when it comes to economic and tax policy, we need to listen to
Main Street small businesses and mom-and-pop shops that create the jobs
in this country. This is what they are saying when it comes to taxes
and spending:
Ninety-one percent of small businesses find that the Tax Code is
complicated enough to hire their own tax preparer.
Eighty-five percent think Congress should revise the Tax Code.
Eighty-one percent think government should cut spending before ever
considering tax increases.
Seventy-eight percent want to close tax loopholes.
And 71 percent agree that tax reform should include lowering the tax
burden on small businesses.
Thus, to enable small businesses to create jobs and improve the
employment climate in this country, tax rates must be low.
High tax rates are a problem for small businesses because they siphon
off revenue owners need to reinvest for growth and to create jobs.
{time} 2140
So what needs to be done?
The implementation of comprehensive tax reform that makes the Tax
Code fairer, less burdensome, and more comprehensible for the folks who
pay taxes and the small businesses that invest in hiring;
The permanent repeal of the estate, or death, tax, which I have long
advocated is critical for small businesses and maintaining a healthy
jobs climate. Many small businesses are family owned. The death tax is
a major impediment for such businesses to keep operating in a down
economy once the owner retires or dies. Protecting small businesses
from the death tax is important in order to keep Main Street businesses
operating for future generations and for preserving their ability to
create jobs as we try to grow this economy;
We should cut taxes to spur investment and hiring. Lower tax rates
lower the cost of capital and increase the rewards for the risks that
businesses take in hiring new workers. I support increasing the small
business expensing limit so businesses can immediately recover their
costs and invest in their businesses and hire new workers;
We must simplify the Tax Code. It is too complicated when 9 out of 10
small businesses must hire someone to prepare their own taxes. Making
the Tax Code easier to understand and follow and not placing new
reporting burdens on small businesses will help them focus on growing
their businesses and creating jobs.
In addition to reducing regulatory burdens and cutting taxes,
eliminating wasteful spending and reducing the size of government is
key to job growth:
Current trends have government spending continuing to hover at 22
percent of gross domestic product for the next 10 years;
Continued spending adds to the $16.6 trillion debt, and that, in
turn, drives up interest costs to pay for borrowing;
The CBO estimates that interest paid on the national debt as a
percentage of the overall budget will more than double from the current
6.2 percent of the budget to 14.1 percent, consuming an ever larger
share of Federal resources.
Clearly, we do need to cut spending relative to the overall Federal
budget. Cutting spending reduces the amount of money government takes
from the private economy. Cutting spending and reducing the size of
government relative to the private sector keeps more money in the
private sector where it can be put to productive use, such as in hiring
and creating jobs. Cutting wasteful spending and balancing our national
budget will also absolutely help job growth.
It's simple: the Federal Government should not spend more than it
takes in if we want to create an environment conducive to job creation.
I have advocated for and have supported the budget my House colleagues
passed this spring that balances the budget in 10 years by cutting
spending and fixing our broken Tax Code so that it is fairer and
simpler for everyone. I also support and have worked hard to pass a
balanced budget amendment to the Constitution.
Requiring the Federal Government to live within its means and balance
spending with the money it takes in, just as families in Illinois and
across America have to do, will instill fiscal discipline required to
get our economy moving in the right direction. This will also promote
confidence and create certainty within our Nation's private sector
businesses so they can take productive steps towards hiring workers and
growing their businesses.
According to the small businesses I meet in my district, there are
more things we can do to spur job creation in this country. We can open
up American markets overseas. New markets mean a greater demand for
American-made goods. The businesses that manufacture these products
will hire workers to meet the demand.
In that regard, I have voted in favor of free trade agreements with
countries such as Colombia and Panama and South Korea. I have also
supported permanent normal trade relations with Russia in order that
American manufacturers can receive the benefits of open markets as a
result of Russia's joining the WTO. We also must eliminate the
bureaucracy that hinders the development of American products.
Bureaucracy should not stand in the way of American innovation and
bringing products to market.
I am a cosponsor of the Protect Small Business Jobs Act. This
legislation would provide small businesses with a limited grace period
to correct regulatory violations, and if the violation is corrected in
a timely manner, it allows for the waiver of any sanctions against the
small business. This will help business owners like Tom, who, in
referring to one Federal regulatory authority with which he was
dealing, said, ``Rather than working with industry to fix alleged
issues, it is imposing significant fines right off the bat without
giving companies the opportunity to first fix the concerns.''
Government should be a facilitator, not an obstacle, to new product
development and job creation.
Mr. Speaker, the pathway to a growing economy and putting people back
to work is clear. The small business job creators in my district and
around the country have spoken: they want to get rid of burdensome and
unnecessary red tape; they want lower taxes and a simpler Tax Code that
lends to certainty and encourages growth and investment; and they want
the Federal Government to exercise fiscal discipline and to serve as a
facilitator for American innovation, product development, and
marketing.
Mr. Speaker, we can help American small businesses get Americans back
to work. America is the land of opportunity where, with a mixture of
aspiration and diligence, anyone can achieve one's dreams. Let's
redouble our efforts and renew our commitment to our fellow citizens to
help them build a bright future for themselves, their children, and for
this Nation.
I yield back the balance of my time.
=========================== NOTE ===========================
The following text printed in the June 17 Congressional Record,
Page H3685, has been moved to the June 5 Congressional Record,
Page H3135:OMISSION FROM THE CONGRESSIONAL RECORD OF WENDENSDAY,
JUNE 5, 2013 AT PAGE H3135-H3136In effect, they become a workforce
multiplier, freeing agents to focus on other vital tasks like
identifying, tracking, interdicting, and resolving events along
the border.For these reasons, I accept the gentleman}s amendment,
and I yield back the balance of my time.
The online version has been deleted.
========================= END NOTE =========================
=========================== NOTE ===========================
The following text printed in the June 17 Congressional Record,
Page H3686, has been moved to the June 5 Congressional Record,
Page H3135: The Acting CHAIR. The question is on the amendment
offered by the gentleman from Texas (Mr. POE). The amendment was
agreed to. AMENDMENT OFFERED BY MR. HECK OF NEVADA. Mr. HECK of
Nevada. Mr. Chairman. I have an amendment at the desk.The Acting
CHAIR. The Clerk will report the amendment. The Clerk read as
follows:
The online version has been deleted.
========================= END NOTE =========================
____________________